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If you have a short on FOGL and BOR strikes lucky : you lose your shirt on FOGL....you might as well not bother....how do you reason this out ?....you cannot guess how the sp's will react...in my experience things drop like a stone and you then get stopped out at the bottom, way past your stoploss.....very dangerous game with cfds or spreads.....you'd be lucky to get out in time....you can be sure that your trade will be delayed....

RF - for BOR's Darwin drill.


If BOR strike BOR will go up 300% to 400% in the following days/weeks.

If BOR strike FOGL will go up 100% to 150%.

So a short on FOGL will mean your overall gain would be limited to 150% to 250% (BOR gain - FOGL gain).

Actually most people will close their FOGL short during the initial 50% spike and so it would be closed earlier and so the BOR gain would be bigger)

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If BOR fail they will fall 50%.

If BOR fail FOGL will fall 25%.

So a short on FOGL will cut your losses on BOR by 50% (BOR loss - FOGL short gain).


Hedging by "pair trading" is what it is called - look it up.

There is a risk with that strategy....If the news is released before trading opens and you are not watching your screen, the stop may not trigger.

stops will always trigger, but unless guaranteed, not necessarily at the price you hoped

I thought if it gaps up or down at the open, then tight stops will not trigger, assuming the opening price is outside the stop? Another reason why I don't spreadbet then!!!

The calculations are ridiculous....you can be sure that it won't work...you cannot guarantee the percentages that Prosels is mentioning,...it never works like that.....and I've had delayed trades where I've been stopped out at the worst possible price...only a guaranteed stoploss would save you and I bet you won't get one for these stocks...I've a long spread on FOGL and I have to say that I'm a bit nervous about it....

Maybe you would be better off not to have a stop loss for what good they are, if they fall wait for a bounce and sell or just sell .

It'll be very low so I'd wait for the following wells and a june contract is a must have....

When I think that we could have an incredible scramble to get in here......sp just starting to move.....fun, fun, fun.....till the daddy took the tuber away....

I wonder how our man on the rig is getting on......hope that sat phone is working.....

It's starting.....here we goooo.....sp creeping up.....I now declare that we either make it or not....faites vos jeux messieurs dames......

Anybody going to attempt a suicidal short on this ?....

Calm down dear! It's only a 2p increase!

It's the start 'Arry......this should wake up soon and we might get some upside now...

Must say that in percentages terms with risks....it's best to be mainly in the other one : FOGL.....

http://www.capmarkets.com/11013/Oil___Gas_review_-_February_2012.pdf

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when are drill results due? .... it'll help with timing as to when to get out!

Not sure ...perhaps another two weeks...but it''s possible they do what RKH did first time round and give an indication of hydrocarbon shows,....and encountered an oil column...way before drilling was completed....it's a real gamble...FOGL have loads of prospects...but BOR just two it seems....what I fear is the DES and RKH situation all over again....who knows...you never know this lot might just hit it bigtime at the first attempt.....

Drilling at the first prospect is underway. The company forecasts that it will take 90
days to drill both Darwin and Stebbing. The key price drivers will be the well results
from these two wells. We highlight that the two wells are testing two different types
of play. Failure (or success) at the first well does change the risk profile of the second.

That's to complete operations...in the event of a discovery...the market will have to be updated !.